The energy efficient lighting industry is going through an exciting period of development and change. Advancements in technology are continuously improving every aspect of the lighting industry, from production costs to energy efficiency. This improvement in lighting options is leading the way for the development of features that help businesses and homeowners improve their property’s energy efficiency and reduce lighting costs. Here are the trends you can expect to see in energy efficient lighting throughout 2018:
Expanding Usage of Energy Efficient Connected Lighting
Connected indoor lighting allows businesses and homeowners to create a smart lighting system that collects data on energy usage and sets rules that control how lights react and operate. For example, lights may turn off after a certain amount of time without movement in the room, dim automatically at different times, or even change color. Improvements in LED technology is driving the growth of connected lighting, as this type of lighting system allows a greater degree of connectivity and control. LED bulbs offer a huge improvement in energy efficiency over traditional lighting solutions such as fluorescent and halogen options. The desire to improve energy efficiency, combined with updated building codes that require highly efficient lighting controls, will help drive growth in the connected lighting market where networked systems are able to analyze usage data to create optimizations that lower energy use and reduce lighting costs. In particular, IoT connected lighting is expected to see a large surge in popularity due to its flexibility, intelligence, and ability to be connected to other non-lighting systems. In fact, revenue is estimated to grow from $651.1 million to $4.5 billion over the next 8 years. Navigant Research predicts that revenue from all types of connected lighting control systems will grow at a compound annual growth rate of 14.3% globally between 2017 and 2026.
Further research from Strategies Unlimited predicts that building square footage covered by connected lights will continue to expand in 2018, and is predicted to reach 16.5 million square feet by 2022. In turn, the connected indoor lighting market will break $4 billion globally with North America accounting for almost $2 billion of the revenue. The replacement of existing lights and installation of new fixtures will mostly be with LED technology with 82%, or 25 billion units, of connected lights powered by LEDs by 2022, up from 56% in 2014.
Continued Adoption of Energy Efficient Lighting Options
LED replacement lamps including A-lamps, MR16s, Reflectors, T-Lamps, etc. are predicted to continue to grow in popularity throughout 2018, but the number of installed LED lamps still trails behind incandescent and CFL options. However, this growth is just the beginning of the adoption of LED alternatives, with Strategies Unlimited predicting that these replacement fixtures will dominate the market by 2022 with 20 billion LED fixtures fitted globally. Investment spending on LED energy efficient lamps in new construction and retrofit light projects will account for almost two-thirds of lamp sales next year, and increase steadily throughout the following years.
Demand for Energy Efficient Industrial and Commercial Lighting Fixtures Will Rise
Industrial and commercial light fixture sales currently account for the largest value in the lighting fixtures industry. This sector of the fixture market will continue to see an increase in demand, and the global value of the lighting fixtures market is predicted to reach almost $90 billion by the end of 2021. A market research study by Transparency Market Research attributes this growth to an increase in government regulations that impose energy efficiency requirements on both commercial and industrial buildings and properties. The need to comply with these much stricter rules will result in an increased demand for both new installation fixtures and retrofit lighting fixtures as businesses find ways to reduce their energy usage. The report also highlights that adoption of energy efficient lighting is being restricted due to the high cost of retrofit projects; however, the cost of LED retrofit options has reduced significantly, as this trend has resulted in reduced barriers to entry, while a shorter cost recuperation period helps fuel growth.
Energy Efficient Lighting Ballast Market Will See Significant Growth
As mentioned above, LED lighting will see a huge rise in popularity in 2018 and beyond. This trend toward energy efficient options will be a driving factor behind the lighting ballast market growth in the upcoming year. LEDs are a rugged, long-lasting, and cost effective choice that can be used in many commercial and residential applications. As the adoption of LED lighting spreads, a corresponding increase will be seen in the lighting ballast market as ballasts are installed to protect the longevity of LED components.
The Lighting Ballast Market Report by Transparency Market Research also highlights that advancements in lighting technology will be a leading reason behind future market growth. The report predicts that new technology that supports lighting features, such as automated systems, daylight harvesting, demand response, and personal dimming, will require lighting ballasts that accommodate these functions. Although magnetic ballasts, which help control fluorescent light fixtures, currently dominate the market, 2018 could see large growth in the sale of electronic ballasts that work with LED light fixtures and lamps, which will be boosted by a rising number of online sales that allow contractors to secure the best technology at the right price.
Increased Demand for Energy Efficient High-End Lighting
Grand View Research predicts in their High-End Lighting Market Analysis that the demand for high-end energy efficient fixtures for both commercial and residential installations will continue to increase over the next few years. Once again, technology is one of the major contributors to this market growth. 2018 will see a rise of property owners retrofitting buildings with high-end connected lighting systems that offer advanced features such as sensor-enabled fixtures, color-changing bulbs, and auto-dimming, that’s not available with traditional lighting. LED lights will dominate the high-end sector, especially in countries where government regulations are phasing out incandescent, fluorescent, and halogen options, which have traditionally dominated the residential market. Both wired and wireless high-end lighting options will see continued growth in the short term; however, wireless options may begin to increase in popularity as technology improves over the next few years.
2018: The Year of Technology
All of the trends predicted for 2018 are fueled by the advancement of technology that helps make energy efficient lighting options a practical, reliable, and affordable option for new installations and retrofit lights. As the technology behind the new energy efficient options continues to improve and more products are developed, more and more businesses will see the benefits of switching from traditional lighting to an energy efficient choice!
Shine Retrofit is a leading supplier of high-quality energy efficient lighting fixtures and components. If you’d like help finding the best products for your lighting needs, please call or email our team of qualified lighting experts today!